Money laundering supervision for money service businesses
Find out if you’re a money service business and need to register with HM Revenue and Customs (HMRC) under the Money Laundering Regulations.
If you’re already supervised by the Financial Conduct Authority (FCA), you don’t also need to register with HMRC.
You must not run a money service business until you’ve registered.
The term money service business has a special meaning under the Regulations.
When you put anti-money laundering policies and procedures in place, you must make sure they cover all your activities carried out under the regulations.
Who should register
You must register your business if it:
- acts as a bureau de change or currency exchange office
- transmits money, or any representation of money, including if your business has an exemption certificate from the FCA to be a small e-money issuer - just collecting and delivering money as a cash courier isn’t transmitting money
- cashes cheques that are payable to your customers
- takes payments on telecommunications, digital and IT devices and acts as an intermediary between a payer and supplier
- provides a payment service for utility and other household bills
If you exchange currency or cash cheques occasionally
You don’t have to register if you meet all of these conditions:
- currency exchange or cheque cashing is a minor part of, and directly related to, your main activity
- the total turnover from your money service activities is no more than £100,000 a year or 5% of the total annual turnover of your business
- currency exchange or cheque cashing transactions worth more than €1,000 are limited to 1 per customer (this could be a single transaction or a series of smaller transactions that seem to be linked)
- the currency exchange or cheque cashing service must only be available to customers of the main business, it mustn’t be available to the public
Transmitting money that’s not ‘by way of business’
If you transmit money from time to time but not by way of business you may not have to register. If you think you fall into this category contact HMRC to check.
This includes where you:
- travel abroad to personally deliver cash for your customers
- take customers’ personal cheques, written by them against their own account.
However, if you carry out other money service business activities, you’ll need to register.
If you collect money from your customers and deliver it to someone else, like re-stocking cash dispensers and delivering cash for shops you don’t need to register.
Consumer credit institutions
If you’re already registered with HMRC for money service business activities, we’ll also supervise your:
- work as a consumer credit institution
- supply of safe custody services
Registering with the FCA
Money transmitters also have to be registered or authorised by the FCA under the Payment Services Regulations 2009.
Money service businesses with a credit licence issued under the Consumer Credit Act 1974 must be supervised by the FCA.
Telecommunication, digital and IT payment service provider
A telecommunication, digital and IT payment service provider acts as an intermediary between a payer and the supplier of goods and services and:
- the payer gives consent to make the payment through any type of telecommunication, digital or IT device
- you receive the payment and transfer it to the supplier of goods and services as an intermediary
The devices in this definition include mobile telephones, laptop, desktop or tablet computers, interactive televisions or similar devices.
You’re not a payment service provider if you simply accept a payment from a debit card or credit card for payment of good or services you supplied to your customer.
You’re not a payment service provider if your customer only uses the device to instruct the bank to make a payment and the bank does not transmit the payment via you.
Bill payment service providers
A bill payment service provider provides a payment service for utility and other household bills and act on behalf of the payer. This includes bills for:
- gas and electricity
- water rates and sewage charges
- council tax payments
- household insurance
You’re not a bill payment service provider if you receive a payment on behalf of the payee (the utility company) so that your receipt constitutes settlement of the payer’s debt to the payee.
How to register
At the end of each registration period we’ll send you a renewal notice inviting you to renew your registration by paying the annual fee on all your listed premises. If you don’t need your registration to continue then you should notify HMRC.
If you don’t pay the correct renewal fee then HMRC may terminate your registration and remove your business from its anti-money laundering register.
Published: 25 February 2014
Updated: 26 June 2017
- Updated to include guidance for bill payment service providers and telecommunication, digital and IT payment service providers.
- Content reviewed and updated to simply the registration process.
- First published.